3.

0 TQM in Malaysian Public Sector

 3.0 TQM in the Public Sector

LEARNING OBJECTIVES:

After studying this chapter, you should be able to:

1. explain the concept of Total Quality

Management (TQM) ; and
2. understand the implementation of TQM in
the public sector;
 3.0 Historical Development of TQ in the Public Sector

 1920s - The concept of TQ specifically TQM which is a

continuous process that involves the whole organization and its
customer-driven was introduced.

 1950s - later introduced to the corporate managers in

Japan.

 1980s - The increasing awareness world-wide on the

importance of quality. These changes have directly affected the
views and attitudes of managers in the both, public and private
sectors on quality management.

 1980s - TQ is regarded as one of the important thrusts during

public sector reformation.
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1.8 Historical Development of TQ in the Public Sector

 Public sector focuses on delivering services.

Service is defined as any primary or complementary

activity that does not directly produce a physical product –
that is, the non-goods part of the transaction between
buyer (customer) and seller (provider).
(Evans & Lindsay, 2008).

 The Malaysian government’s effort taken to improve the

quality of the whole public service system are; sponsoring
training, seminars and workshops on quality and also
publishing guidelines, circulars and manuals on quality
management.
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1.8 Historical Development of TQ in the Public Sector

 1992 - The Malaysian Government through the Development

Administration Circular No.1 of 1992 ; Guide On Total
Quality Management In The Public Service, implemented
Total Quality Management (TQM) in the public sector, with
5 basic concepts:

a. Meeting customers’ requirement.

b. Maintain through prevention.
c. Standard of performance is zero-defect.
d. Cost of quality is non-conformance of standards.
e. Whole work is a process.
 3.1 Definition of TQM
(Concept and Characteristics)

 It is a continuous process that involve the whole

organization.

 It is customer driven.

 It is a process of culture transformation through which the

existing elements of the culture are modified, replaced or
strengthened with better elements which encompass values and
attitudes, systems and procedures, operational practices,
organization structure and so forth.

 It encompasses all operations and activities pertaining to an

organization.
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3.1 Definition of TQM
(Concept and Characteristics)

 It focuses on the development of Q systems and

work processes.

 It emphasizes on customers and suppliers –

customers feedback is used to design systems and work
processes while suppliers are treated as business
partners.

 It is the process of continuous improvement where

strategic planned actions are taken towards the
attainment of the long term objective of the
organization.
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3.1 Definition of TQM
(Concept and Characteristics)

 It constantly focuses on control of the cost of

quality – for eg wastage resources can be done
through prevention, improving work processes,
solve problems using systematic problem-solving.

 It emphasizes on Q assurance - to ensure that

every output produced by an organization is of quality
and satisfies the customer.

 It is everybody’s responsibility (collective

responsibility) for ensuring the success of the quality
improvement efforts.
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3.1 Definition of TQM
(Concept and Characteristics)

 It strongly encourages the contribution of

work teams where the work teams are effective
in contributing creative and innovative ideas and in
implementing improvements successfully.
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3.1 Definition of TQM
(Concept and Characteristics)

 The objective of TQM is :

a. to provide customer satisfaction which is attained

by producing outputs that conform to the
requirements of the customer.
b. to meet customer expectations through surveys
etc.
c. to produce defect-free or error- free output ie to
eliminate mistakes from the very first time.
Note :
In order to meet ‘c’, the organization should ensure that the right outputs
are produced as required by the customers.
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The process of continuous improvement in TQM involves 7 integrated
steps as follows :

1. Determine improvement objectives – Ask if

improvement is needed and why is it needed.
2. Determine method – suitable with objectives.
3. Engage in education and training for staff –
more clear about the method.
4. Implement improvement method.
5. Evaluate effects of improvement - measure if
it meets the objectives.
6. Standardize processes – if ok, proceeds
7. Take corrective action – if ithe improvement
doesn’t meet the objectives.
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3.1.1 Features of TQM

4 important features are :

1. Objective. – same as 3.1

2. Focus.
3. Strategy.
4. Implementor.
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3.1.1 Features of TQM

1. Objective

a. Satisfaction of customer
b. Zero defect/ error-free
c. Producing the output right the first time

2. Focus

a. Processes and systems

b. Organization culture
c. Customers
d. Suppliers
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3.1.1 Features of TQM

3. Strategy

a. Continuous improvement.
b. Total involvement of the organization.
c. Strategic actions.
d. Orientation towards long term objective.
e. Control of quality costs.
f. Preventive action.
g. Emphasis on QA.
h. Systematic problem solving.
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3.1.1 Features of TQM

4. Implementor

a. Top management (Leaders)

b. Total participation of workers
c. Work teams
 3.2 SEVEN (7) Principles of TQM in
the Public Sector

1. Top Management Support

2. Strategic Quality Planning
3. Customer Focus
4. Training and Recognition
5. Teamwork
6. Performance Measurement
7. Quality Assurance
 The Similarities And Differences Between
TQM In The Public And Private Sector

The similarities :
1. Both sectors emphasize on the 7 TQM principles
mentioned above.

2. Both sectors focus on the 4 features of TQM

mentioned above.

3. The process of continuous improvement in

TQM for both sectors involves 7 integrated steps
mentioned above.
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The Similarities And Differences Between
TQM In The Public And Private Sector

The differences :
1. Customer Focus - TQM in the private sector organizations
gives more attention to customers satisfaction as compared to
the public sector as they are profit oriented and their customers
are the ones who support their business and give them profit.
While public sector gives attention to customers’ satisfaction to
create good reputation towards the government and maintain
legitimacy of the government. This is because public sector
represents the government.

2. Performance measurement is apart of TQM implementation.

Performance in the private sector is easy to quantify as
the products are tangible while performance in the public sector
is difficult to quantify as the products are intangible.
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The Similarities And Differences Between
TQM In The Public And Private Sector

The differences :

3. Customization - TQM in the public sector which offers

services to the customers focuses more on employees and
information technology (IT). Employees requires a high degree
of customization because public sector must tailor to the needs
of individual customer. (personalise the service considering
age, race, religion, profession etc.) while private sector
requires lower degree of customization as for manufacturing
the goal is uniformed and standard provider is the same
throughout the production.
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The Similarities And Differences Between
TQM In The Public And Private Sector

The differences :
4. Process Focus - TQM in the private sector focuses
on the process to produce a quality product which is
produced prior to consumption while TQM in the public
sector focuses from the beginning until the end of the
process as service to the customers are produced and
consumed simultaneously.

5.Cost of Q - In ensuring that product conform to specification,

certain costs called cost of quality, are incurred. Cost of
quality in the private sector is primarily product oriented
such as warranty claims while cost of quality in the
public sector is more generally labor dependent such as
customer service and complaint-handling staff.
 3.3 Requirements for Implementing
TQM In The Public Sector

1. Commitment by Top Management.

2. Commitment by Middle Management.
3. Establishment of Organization Steering
Committee.
4. Planning and Publicizing.
5. Adequate Resources.
6. Infrastructure that Supports Deployment
and Continual Improvement.
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3.3 Requirements for Implementing
TQM In The Public Sector

1. Commitment by Top Management.

Top management should spend a third to half of

their time used in the total quality efforts,
changing the corporate culture to TQ culture.

2. Commitment by Middle Management.

Middle management deals with the facilities,

equipment and processes put in place by the
top management. They are the people who will
carry the brunt of the work as the path to TQ
unfolds.
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3.3 Requirements for Implementing
TQM In The Public Sector

3. Establishment of Organization-wide
Steering Committee.

It should be chaired by the person heading

the organization such as the Director and its
membership should comprise that person‘s
direct subordinates/ assistants such as all
Vice Directors. This group needs to establish
the direction, to establish how TQ is to be
implemented, and to ensure that it happens.
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3.3 Requirements for Implementing
TQM In The Public Sector

4. Planning and Publicizing.

The steering committee must develop the

vision statement and guiding principles, set
the goals and objectives, put the TQ
implementation plan in place, and then
develop and award and recognition program
and other publicity efforts. The goals and
objectives must harmonize with the vision
statement.
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3.3 Requirements for Implementing
TQM In The Public Sector

5. Adequate Resources.

Adequate resources are needed to produce

quality outputs. The resources have a cost
but they need not be expensive. They
include training, consultant expense and
others needed to produce quality outputs.
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3.3 Requirements for Implementing
TQM In The Public Sector
6. Infrastructure that Supports Deployment
and Continual Improvement.

Public organizations need infrastructure that

supports the deployment of TQ and continual
improvement throughout the organization. The
infrastructure includes the vision, objectives,
awards and recognition program, and
communication. 3 other infrastructure features
are :
a. operating procedures
b. organizational structure
c. union situation
 3.4 TQM Implementation
Approaches to be Avoided

1. Train all your employees at once.

2. Rush in TQ by putting too many people in

teams.

3. Delegate TQ implementation.

4. Start TQ implementation before everyone is

prepared.
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3.4 TQM Implementation
Approaches to be Avoided

1. Train all your employees at once (about the same

time).

Training all employees at once may end up having

employees who have no use for the training for months or
years. By the time, not having applied their new skills, the
employees might have forgotten most of the training. (The
right way is to train small group JIT – just as they need it).

(*’at once’ is NOT the same as; for once, one time only,
once in a lifetime, same time, only once)
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3.4 TQM Implementation
Approaches to be Avoided

2. Rush in TQ by putting too many people in teams (create too

many teams).

Several teams in the organization are formed to make improvement

continuously.

Having too many teams may result in d increase in expenses. Eg.

American QCC was unlike the Japanese QCC. The American teams
did not really work together, did not focus on kaizen.

Having too many people in teams may end up with the problem of
social loafing. (no. of members depends on requirement)

(* in teams’ is NOT the same as; ‘in groups’ or ‘in a team’ )

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3.4 TQM Implementation
Approaches to be Avoided
3. Delegate TQ implementation.

Failure in implementing TQM is also due to no active commitment

by all personnel, no involvement by top management and
delegating the implementation to the officer or any department.

4. Start TQ implementation before top managers & subordinates

are prepared.

Not-well-prepared happens when top managers find it difficult to

acknowledge that they don’t know something about TQM
implementation.

This can also happen to the subordinates/ employees when they

are not educated with the knowledge concerned and lead to a
failure in the implementation!
End of Topic 3.0
 TAZKIRAH…

“Dan (ingatlah) Allah tidak suka kepada tiap-tiap

orang yang sombong, takbur, lagi membanggakan
diri.”
Surah Al-Hadid : 23